1. Dividing Contributions
401(k) plans include employee deferrals and employer contributions. It’s important to specify in the QDRO whether only vested employer contributions should be divided. Employer contributions may be subject to a vesting schedule, which can result in forfeited amounts if the participant has not met certain service thresholds at the time of division.
We recommend clearly stating whether the alternate payee has rights to:
- Employee pre-tax contributions
- Traditional employer matching contributions (vested only)
- Roth 401(k) accounts, if applicable

